10 wise tips on how to improve your financial situation in 2016 year

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The New Year is a great time to take stock and draw conclusions, try to improve relationships with others or improve your health.

In addition, you can take care of improving your financial situation, and this is not about changing jobs or increasing your income in other ways, but following a few simple tips that will save you money without disturbing your normal lifestyle.

10 has collected such tips Vox.

Pay (or reduce) credit card debt

High interest credit card debt is the worst financial burden many Americans face. According to the Federal Reserve, the average annual percentage Americans pay on credit cards is 13,93%. That is, in fact, for each dollar spent on the card, you return almost 1,14 dollars. Thus, getting rid of these expenses, you can significantly save.

Pay in cash

One way to save money is to put your bank cards aside and pay in cash. Experiments confirm that most people spend less when holding real banknotes in their hands rather than a piece of plastic.

Also ignore the credit card reward system. Based on an experiment conducted by economists, it turned out that having received a promotion in the form of 25 dollars per card, its owner began to spend a month on 79 dollars more, and the average monthly debt increased by 191 dollars.

Keep a financial diary

It is difficult to develop a reasonable financial plan when you do not know how much and what you spend. Therefore, keep a financial diary (in a notebook or spreadsheet), in which for a few months write down everything you spend. You may be very surprised that you learn about your expenses, and therefore you will discover new ways to reduce them.

Save on Mobile and Television

The phone is the first tool to save money. You most likely do not need as many minutes to talk as your tariff plan suggests.

It's also worth re-examining your cable and internet bills - chances are you're not using most of the services you pay for.

Create a strategic reserve covering three months for your expenses.

It is impossible to create a reasonable plan for managing your finances if you are constantly busy with daily or weekly recording of your income and expenses. Effective budgeting and planning requires a cash reserve that can be used if necessary or unforeseen.

The key is to keep this reserve separate from your main bank account to avoid the temptation to spend it.

Creating such a reserve is certainly not easy, and you will not do it quickly, but it's worth it. This reserve provides peace of mind in case you are sick, have lost your job or your neighbors flooded your apartment, or you just found a good investment project.

Start investing into an account to pay for your children's college

If you have small children, then the right decision will be to open an account to pay for their college, which will receive regular deductions from your salary.

This will allow you to save about two thousand dollars each year for your child, and possibly much more. This is also a good opportunity if you have generous relatives who can contribute money there - as Christmas or birthday gifts.

Don't let yourself be fooled by high deposit interest rates.

By making deposits and investments, do not let funds fool you with promises of high return on deposits. If you are offered more than 0,3%, it is worth considering. Most likely, such a fund will not be able to fulfill its obligations.

Switch to cheaper entertainment.

Discover the economical types of recreation and pastime. A restaurant on the outskirts of the city, a walk in the park or a trip to the beach will not hit hard on your budget, but the time spent with friends or with your loved one will not be any less pleasant.

Stop smoking (and reduce the cost of drinking in restaurants)

Smoking is too expensive. The average price for cigarettes in the United States is about $6,25 per pack. Thus, pack-a-day smokers spend thousands of dollars on cigarettes every year.

The next item, which will help to save money, is the refusal to drink in restaurants, where it is also a very expensive pleasure. Dine in a cafe because you can and without alcohol.

Ensure maximum insurance for cars and housing

Try to get the most expensive insurance for your car and housing, which you can pay. Of course, it will be significant monthly expenses that you may not need, but this will provide you peace of mind and the necessary financial resources in case your home or car needs expensive repairs.

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